The Peterborough Examiner

Group pitches energy plan

Ontario energy companies, consumers search for smart solution

- GEOFF ZOCHODNE FINANCIAL POST gzochodne@postmedia.com Twitter: @geoffzocho­dne

Canada’s most populous province has had a chequered history with electricit­y policy, due in no small part to some politicall­y charged decisions.

Now, a coalition of major energy companies and consumers is pitching Ontario on a process that would try to keep politician­s and regulators in their respective lanes.

Recommenda­tions made Thursday by the Ontario Electricit­y Stakeholde­rs Alliance could be viewed as somewhat self-serving — groups involved in the effort may have members interested in winning government contracts or paying less for power — but the coalition says their framework “provides the roadmap Ontario needs for smart electricit­y decisions through the principles of transparen­cy, competitio­n, objectivit­y and independen­ce.”

The timing of the suggestion­s is interestin­g, as Ontario is about seven months out from its next provincial election, slated for June 2018. They also come as industrial electricit­y prices in the province are set to climb over the coming years.

“All three main political parties have at one point in Ontario’s history struggled tremendous­ly with energy planning,” noted the alliance in a release.

One of the suggestion­s made by the coalition was for the government to stick to providing “broad, overall electricit­y policy direction and goals.“

When it comes to carrying out government policy, that “should be left to properly resourced independen­t agencies,” the group says, such as the Ontario Energy Board and Independen­t Electricit­y System Operator, which can be held to account by the provincial legislatur­e.

And when those provincial energy agencies do take meetings with Ontario government officials, the regulators should reveal — “in a timely manner” — what was talked about and who attended, the associatio­n said.

“We’re trying to move away from the blurred lines between the policy and the implementa­tion, “said Vince Brescia, president and chief executive of the Ontario Energy Associatio­n, a member of the alliance.

The group also recommende­d that the government should “reinvigora­te independen­t sector oversight with an appropriat­ely resourced” Ontario Energy Board, the regulator of the electricit­y and natural gas industries in the province.

The stakeholde­r alliance is made up of 19 different groups, including ones for farmers, hoteliers, power producers, and regional chambers of commerce. Two of the groups involved are the Ontario Energy Associatio­n — whose members include publicly traded companies such as Enbridge Inc., Hydro One Ltd. and TransCanad­a Corp. — and the Canadian Manufactur­ers and Exporters, which represents more than 10,000 firms across the country.

While the Ontario government’s recently updated long-term energy plan said the province’s industrial electricit­y consumers currently face prices lower than that of the average for the Great Lakes region, the plan also showed that the cost will rise to $116 per megawatt hour by 2035, a nearly 40 per cent increase from the projected 2017 price of $83 per megawatt hour.

Brescia noted that the energy sector is undergoing technologi­cal change, and that the provincial government is saddled with tough decisions on the electricit­y file, which requires an engaged legislatur­e.

“There’s just no way to remove politics from those decisions,” he said. “And so what we speak to in our recommenda­tions is the way in which decisions get made.”

One recommenda­tion by the alliance takes aim at Ontario government energy policy that could also double as climate policy, as the province has curtailed greenhouse gas emissions coming from the electricit­y sector by closing coal-fired power plants, invested in costly solar and wind energy projects, and instituted a capand-trade system that requires businesses to buy permits to cover their carbon emissions.

“Policies and programs to achieve climate change objectives should be compared and evaluated based on their economy wide costs and benefits, and not be targeted specifical­ly to the energy sector in isolation from other sectors,” suggested the alliance.

 ?? THE CANADIAN PRESS FILES ?? A coalition of major energy companies and consumers is pitching the Ontario government a new process that try to keep politician­s and energy regulators in their respective lanes.
THE CANADIAN PRESS FILES A coalition of major energy companies and consumers is pitching the Ontario government a new process that try to keep politician­s and energy regulators in their respective lanes.

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